Press release

Elecnor reports sales of EUR 368 million and net profit of EUR 17.6 million during the first quarter of the year


  • The first quarter of the year showed an improvement against the results of the last two quarters of 2013, when consolidated net profit stood at EUR 13.5 million and EUR (8.6) million respectively.

  • With a solid backlog of contracts pending, the Elecnor Group is maintaining its overall 2014 target of surpassing last year's results.
Madrid, 9 May 2014.- The Elecnor Group reported revenue of EUR 368.4 million in the first quarter of 2014, 58.6% of which was earned on overseas markets, where business expanded by 2.3%

Elecnor looks set to maintain this excellent performance in terms of international sales for the rest of the year, thanks to the following factors:

A backlog of pending overseas contracts appraised as EUR 1,967 million, or an 18.3% increase against the previous year. This accounts for 80.3% of the total backlog at 31 March 2014, which stood at EUR 2,449 million (a 14% increase compared to the previous year).

  • Full commercial operations of the new L’Erable 100 MW wind farm in Quebec (Canada), commissioned at the end of 2013.

  • A contribution to sales by Elecnor Hawkeye, Elecnor's US subsidiary created following the purchase of the Willbros Group's Hawkeye LLC subsidiary on 1 November 2013.

  • On the domestic market, however, revenue was down by 9.5% against the first quarter of 2013. Sales in Spain at 31 March accounted for 41.4% of total revenue. 
The main reasons for falling sales in Spain were as follows:

  • Lower income reported by Group companies operating renewable energy assets, chiefly wind farms, as a result of application of Law 24/2013 of 26 December and its implementation in the proposed Ministerial Order sent to the National Markets and Competition Commission ("CNMC") by the Government.

  • The effects of lower public and private investment in sectors where the Group is developing its infrastructure business in Spain. 
Results

At the end of the first quarter of 2014 consolidated profit after tax stood at EUR 17.6 million. This figure was substantially affected by application of the proposed Ministerial Order regulating the market for generating electricity from renewable energy sources. In fact, if the regulation applicable during the first quarter of 2013 had been applied, consolidated net profit at 31 March 2014 would have been greater than a year ago.

Other factors affecting the trend in consolidated net profit, albeit to a lesser extent, were investment by major services companies (electricity, telecommunications, gas etc.), Elecnor's main customers in the infrastructure market, and the costs of commencement of activity on the east coast of the United States through the Elecnor Hawkeye subsidiary.

Despite this, the first quarter of 2014 showed an improvement against the results of the last two quarters of 2013, when consolidated net profit stood at EUR 13.5 million and EUR (8.6) million respectively. Net profit for the last quarter of 2013 was hit particularly hard by asset impairment following the change to regulations mentioned above.

Outlook for 2014

With a solid backlog of contracts pending, the Elecnor Group is maintaining its overall 2014 target of surpassing last year's results.